The Mughal Empire - Economy

By the time of the Mughals, cities had grown in importance. The expanding economy now needed urbanization and a fixed market in order to succeed. Earlier, there were usually weekly markets where people from surrounding regions would congregate at a particular place on a particular day. Once the economy started growing, many trade centres developed which soon grew into prosperous cities. Many Indian cities of that time, according to travelling foreigners, were better than those in Asia and Europe. Communication and transport facilities had also improved during the time of the Mughals and Sher Shah. There were several metalled highways reaching various places of the empire. River transport was also important, especially those which were navigable throughout the year. River transport was a cheap and fast way of transporting goods over long distances. Bridges were also constructed to speed up the movement of land transport. Such initiatives and conditions were important contributing factors to the development of the economy.

Agriculture continued to remain an important part of the economy, but the crops and techniques still remained largely unchanged. Irrigation was largely absent although some areas did have access to canals and water works. A variety of food and cash crops were grown. The textile industry was booming and hence there was tremendous demand for cotton and silk which were important cash crops. Tobacco, introduced sometime in 1604 also became an important cash crop. One negative aspect of the Mughal administration was that they did not make any major efforts in agricultural development. Hence the citizens

were subject to various famines, which had devastating results. With no assistance from the centre, the situation was usually grim. Quite often severe famines led to large scale migration of the population within the empire, and in some cases they even left India. Some Mughal emperors did try initiatives to alleviate the problems, but most of the time it was a case of too little too late. These famines had a detrimental effect on the economy.

Industry had been developing and by the Mughal period was very diversified and involved a large number of people. The range and volume of products manufactured by Indian industries was very large, catering to not only a large domestic demand but also to a large international demand. The most important industry of this period was that of making cotton cloth. Several cotton manufacturing units were scattered across the country, catering to a huge demand. Bengal was renowned for its fine quality silk and cotton cloth. In fact it was said, that the amount of cloth produced in Bengal was more than most of the kingdoms of India and Europe put together. With the cloth industry so successful, the dyeing was also doing very well. Shawl and carpet weaving were also important industries, receiving major patronage during the time of Akbar. The ship building industry also remained important, although India was no longer a major maritime country. The State, while encouraging Industry did not directly support it financially, a task undertaken by various middlemen. This was regrettable, for the industrialists were often exploited by such middlemen. They were also exploited by corrupt nobles and officers who often forced them to sell goods at low prices. The irony of the situation was that although the craftsmen were being deprived of the fair value of their commodities, it was because of the nobles and officers that there was a demand for the work they produced. The nobles and officers having fine tastes encouraged the development of high quality work.

Currency also began to develop with the return of a stable power. Standardized coins were issued in gold, silver and copper. The coins were of superb quality and often had interesting artistic designs. The important matter ofcourse was that currency was now seen as a reliable method of exchange, with the Mughal coins being a respected unit of value.

India had flourishing trade relations with many parts of the world, with foreign trade being an important part of the Indian economy. The chief Indian imports of the time were, raw silks, gold, ivory, precious stones, perfumes, horses and slaves. Chief exports included textiles, spices, opium and indigo. The land routes usually went via Afghanistan, but land transportation was not very safe or reliable. River and sea transport were the popular choices. Customs duties during the period were very low, it was approximately 3.5% on all imports and exports. European traders were also beginning to play an important role in Indian trade, with many of them setting up warehouses and distribution points in the empire. Most European goods however were affordable only by the rich.

The economy flourished during the Mughal period, though it began to deteriorate after the death of Aurangzeb. After the decline of the Mughal empire the country was thrown back into chaos which caused much damage to the Indian economy. With the rise of the British in India, towards the 18th Century, and their conversion of India into a colony, the economy stagnated and in fact took several steps back.

work.

Currency also began to develop with the return of a stable power. Standardized coins were issued in gold, silver and copper. The coins were of superb quality and often had interesting artistic designs. The important matter ofcourse was that currency was now seen as a reliable method of exchange, with the Mughal coins being a respected unit of value.

India had flourishing trade relations with many parts of the world, with foreign trade being an important part of the Indian economy. The chief Indian imports of the time were, raw silks, gold, ivory, precious stones, perfumes, horses and slaves. Chief exports included textiles, spices, opium and indigo. The land routes usually went via Afghanistan, but land transportation was not very safe or reliable. River and sea transport were the popular choices. Customs duties during the period were very low, it was approximately 3.5% on all imports and exports. European traders were also beginning to play an important role in Indian trade, with many of them setting up warehouses and distribution points in the empire. Most European goods however were affordable only by the rich.

The economy flourished during the Mughal period, though it began to deteriorate after the death of Aurangzeb. After the decline of the Mughal empire the country was thrown back into chaos which caused much damage to the Indian economy. With the rise of the British in India, towards the 18th Century, and their conversion of India into a colony, the economy stagnated and in fact took several steps back.